2024 (2) TMI 476 - HC - GST

Cancellation of the registration of the petitioners - not providing an opportunity of hearing as well as such orders were passed without assigning any reason - violation of principles of natural justice - HELD THAT - As the Appellate Authority has dismissed the appeals of the petitioners, the respondent authorities will not be able to exercise the revisional power under section 108 of the GST Act. Therefore, the impugned orders passed by the Appellate Authority as well as the order of cancellation of registration are required to be quashed and set aside. Accordingly, the matters are remanded back to the Assessing Officer at the show-cause notice stage. However, the registration of the petitioners shall remain suspended till the show-cause notice is decided by the Assessing Officer as per the directions issued. The matters remanded back to the Assessing Officer at show-cause notice stage and the registration number of the petitioners shall remain suspended till such show-cause notices are disposed of - petition allowed in part and part matter on remand.

Summary

Issues Involved:
1. Violation of principles of natural justice.
2. Issuance of cryptic notices and orders for cancellation of registration.
3. Dismissal of appeals on the ground of limitation.
4. Non-compliance with previous High Court guidelines.

Summary:

1. Violation of Principles of Natural Justice:
The petitioners challenged the cancellation of their registration on the grounds that they were not provided an opportunity of hearing and that the orders were passed without assigning any reason. The High Court noted the importance of adhering to the principles of natural justice, emphasizing that the authorities must issue show-cause notices containing all necessary details and provide the dealer with an opportunity to respond.

2. Issuance of Cryptic Notices and Orders:
Despite the guidelines issued in the case of M/s. Aggrawal Dyeing & Printing vs. State of Gujarat, the respondent authorities continued to issue cryptic notices and orders for the cancellation of registration numbers. The Court reiterated that the show-cause notices and final orders must contain all necessary information and particulars, and must be forwarded to the dealer in physical form by RPAD.

3. Dismissal of Appeals on the Ground of Limitation:
The petitioners' appeals were dismissed by the Appellate Authority on the ground of limitation. The Court found that the orders of cancellation were passed without giving any reason, and the appeals were dismissed without proper consideration. Consequently, the Court quashed the impugned orders and remanded the matters back to the Assessing Officer at the show-cause notice stage.

4. Non-Compliance with Previous High Court Guidelines:
The Court observed that despite the directions issued in the Aggrawal Dyeing & Printing case, the respondent authorities had not complied with the guidelines. The Chief Commissioner of State Tax and other senior officers were directed to ensure compliance with the guidelines, and disciplinary proceedings were suggested for non-compliance.

Directions Issued:
The Court directed the Assessing Officer to provide detailed reasons for the cancellation of registration within two weeks, allow the petitioners to file a written reply, and pass appropriate orders after providing an opportunity for a personal hearing. The registration of the petitioners shall remain suspended until the show-cause notices are decided.

Conclusion:
The petitions were partly allowed, with the impugned orders quashed and the matters remanded back to the Assessing Officer. The Court emphasized adherence to the principles of natural justice and compliance with the timeline proposed in the order. The Court clarified that it had not gone into the merits of the matter and disposed of the petitions with liberty to revive in case of difficulty.